Voting now closed on Detroit's plan of adjustment, heading toward approval among retirees

(WXYZ) - The voting on Detroit's plan of adjustment is now closed and 7 Action News has learned one of the final steps in bankruptcy is heading for approval.

The approval paves the way for the state's "Grand Bargain" to help ease pension cuts and slash more than $7 billion in debt and liability owed by the City of Detroit.

About 70,000 creditors, in addition to about half city employees and retirees were able to vote. The official results could be announced during a bankruptcy court hearing set for Monday, or at the latest July 21. 

Judge Steven Rhodes has also set a hearing for Tuesday for 600 individual objectors to the plan.  He's giving them 5 minutes each. 

The Detroit case goes to the Court of Appeals on July 30 and the Plan Confirmation Trial is set for August 14.   

A yes vote for the plan of adjustment means the $195 million "Grand Bargain" money set aside by Michigan lawmakers and the $466 million in pledges from the DIA and its supporters would begin to flow into Detroit.

The money will go to city services like lighting, blight removal, and public safety. 

Detroit's art collection would be saved and pension cuts for city retirees would be softened. Even some city bond holders would get 100-percent return on their investments.

It's easy to see why the vote may be headed for large "yes" returns. Governor Rick Snyder repeatedly called for a yes vote and went on a campaign telling voters a no would be devastating for the cash-strapped city.

Emergency Manager Kevyn Orr stressed killing the plan of adjustment with a no vote would mean retirees and creditors could get much less.

Even the unions that fought to derail the plan eventually agreed to terms and in turn urged their members to vote yes.

Action News learned earlier this week the returns were "robust" and speculation was the city would get the necessary vote.

Out of the 70,000 possible votes, sources say the biggest push came in the final days leading up to the deadline and many were "overnighted" less than 48 hours before today's cutoff.

The votes needed to be sent via mail to a location in California.

Sources add the class appearing to have approved the plan by the largest margins, an estimated 85 percent plus, Is the city retirees.    

 

 

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